While Bitcoin and altcoins follow a bumpy road, Coinbase analysts shared their future expectations.
Analysts stated that they expected a decline in the cryptocurrency markets in August and referred to historical data.
Coinbase analysts noted that August generally sees a decrease in cryptocurrency market activity and a decline in the value of major tokens such as Bitcoin and Ethereum.
Coinbase analysts David Duong and David Han wrote in the report:
“Seasonality generally did not work in favor of cryptocurrencies in August.
Historically, trading volumes have been lower in August; spot Bitcoin volumes fell 19% in August 2023 compared to June, and Bitcoin futures volumes fell 30% on global exchanges during the same period.
Over the last five years, Bitcoin has experienced an average decline of 2.8% in August.
Low liquidity and transaction volumes contributed to the increase in volatility. “
Bitfinex's Head of Derivatives Products, Jag Kooner, also stated that there may be a decline in the cryptocurrency industry in August and said, “Currently, various altcoins are at low prices and significant purchases are being made. We also expect the Bitcoin price to change between 61,000 and 70,000 dollars, which will create an accumulation zone.”
*This is not investment advice.